• Tinubu approves 3.3 billion naira plan to settle power debts
• 15 plants sign 2.3 billion naira agreements; implementation underway
• Power shortages persist amid low access, aging infrastructure, gas constraints

Nigerian President Bola Ahmed Tinubu on Sunday approved a 3.3 billion naira ($2.4 million) payment plan to settle accumulated debts in the country’s power sector.

“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector — ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” said Olu Arowolo Verheijen, special adviser on energy to the president.

Implementation has already begun, with 15 power plants signing settlement agreements worth a total of 2.3 billion naira. The debts date back to the period between February 2015 and March 2025.

The programme comes as Nigeria continues to face a significant electricity access deficit. According to the World Bank, 38.8% of the population still lacked access to electricity in 2023, one of the highest rates globally.

The country’s power sector faces persistent structural challenges, including an aging transmission network, gas shortages, rising debt among generation and distribution companies, and repeated acts of infrastructure vandalism.

Although installed capacity is estimated at 13,000 megawatts, only a fraction is available in practice. As a result, many households and businesses rely on diesel generators, which are both costly and highly polluting. A second phase of the programme is expected in the second quarter.

Ingrid Haffiny